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AGI - Goldratt Institute

We put theory of constraints into practice...solving the toughest problems in leadership alignment, project management, supply chain, and production.

TOC Thoughts: Dr. W. Edwards Deming

In his book The New Economics For Industry, Government, Education (2nd Ed.), the great quality thinker, Dr. W. Edwards Deming reinforced his belief that what he referred to as A System of Profound Knowledge "comprises an outside view essential to the management of a system". Chapter 4 begins with the following aim: "The prevailing style of management must undergo transformation. A system can not understand itself. The transformation requires a view from outside. The aim of this chapter is to provide an outside view - a lens - that I call a system of profound knowledge. It provides a map of theory by which to understand the organizations that we work in."

Dr. Deming's
"Outside View"

"The layout of profound knowledge appears here in four parts, all related to each other:
  • Appreciation for a system
  • Knowledge about variation
  • Theory of knowledge
  • Psychology"
Dr. Deming continues the chapter by discussing, in-depth, the critical issues of understanding systems, interdependence, variation and the importance of theory.

The TOC View

An organization is a system, governed by cause and effect, where performance is determined by:
  • Organizational processes that are interdependent, not independent
  • Know-how and know-why in the form of policies, measures, and information exchange that guide decision-making, resulting in actions that ultimately lead to outcomes - through cause and effect.

Demand-Driven Performance
Installment #8, Supply Chain Visibility from the Perspective of Demand-Driven Performance is now available. Read....

For our Japanese visitors
On August 26, AGI was featured in Fuji Sankei Business i. Read... in Japanese.
Understanding THE GOAL: The best-seller by Eli Goldratt and Jeff Cox

Explore the method that Jonah, a college physics professor, was Socratically conveying to plant manager Alex Rogo to help him save his plant.

View on Slideshare.

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Next Open Programs

May 5-9 - Advanced TOC for Distribution & Extended Supply Chains in New Haven, CT USA. Register.

Jun 2-6 - Advanced TOC for Operations in New Haven, CT USA. Register.

2014 Open Schedule Available.

If you are interested in scheduling one of our programs as a dedicated class at your location, please contact us at 203.624.9026 or

AGI On-Demand

TOC for Inventory Management Overview
Improving availability, reducing out-of-stocks and increasing inventory turns with properly located and sized inventory buffers.


Work Flow Prioritization - Cost-Effective On-Time Delivery Performance
Using properly located and sized time buffers to create work flow visibility and prioritization, in order to provide for a more cost-effective use of capacity to deliver on-time.


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